Peru Arrests Armed Forces Chief

ByABC News
December 30, 2000, 12:35 AM

L I M A, Dec. 29 -- Peruvian authorities today arrested the armed forces chief under former President Alberto Fujimori, the highest-profile figure yet detained in corruptionprobes of the nation's ex-spy chief, state televisionreported.

Former Gen. Jose Villanueva, who was one of Perus mostpowerful figures until he was forced out in October, was arrestedby police at a hotel in coastal, tropical town near Ecuador. Awitness said he was with his wife and personal bodyguards.

It was unclear what were the exact charges Villanuevafaced, but he has been accused of helping ex-spy chiefVladimiro Montesinos flee the country and of being unable tojustify a large income and ownership of houses around Lima.

Montesinos was at the center of a bribery scandal thatended in the ouster of Fujimori last month. The ex-spy chief isreported to have escaped from Peru in October and is wanted oncharges ranging from money laundering to running death squads.

State lawyer Jose Ugaz, who is leading a probe intoMontesinos, also said Villanueva had been arrested and that itappeared he faced charges of helping Montesinos flee Peru.

A state prosecutor initiated charges and asked for thehouse arrest of Villanueva. The interior ministry ordered hiscapture, Ugaz told Channel N cable news.

President Valentin Paniaguas new interim government, whichreplaced Fujimori, says Montesinos skimmed profits off theillegal arms and drugs trader and extorted the media, militaryand courts.

Peruvian courts and Congress are probing links of hundredsof top generals, businessmen and judges to Montesinos, theright-hand man to Fujimori for 10 years. But so far only a fewpeople have been detained.

Military is Traditional Power Broker

The military is a traditional power broker in Peru andunder Fujimoris 10 year rule that influence grew. The militarywas Fujimori key backer and Montesinos handpicked most of thegenerals.

Government investigators say Montesinoss amassed a hugefortune by skimming profits off secret state arms contracts.